The newly announced PLI scheme spotlights the need of separating 5G Design-Led Manufacturing from the existing Telecom Equipment PLI scheme to boost Make In India and make the manufacturing of telecom equipment indigenous. In a recent announcement by Finance Minister Nirmala Sitaraman, the PLI scheme for design-led manufacturing is expected to be officially launched soon.
Under the Union Budget 2022, which emphasized ‘Make In India,’ by incentivizing the private sectors and MSMEs, the government is expected to empower the production of 5G Design-led manufacturing. It has been stated that funds for the upcoming PLI scheme would be provided from the already existing funds for Telecom equipment under PLI, which is Rs 12,951 crores. The government is expected to offer Rs 7400 crore to Telecom with the remaining surplus fund for the newly announced PLI incentives.
The PLI announcement for the 5G design-led manufacturing has been done under the vision of acquiring indigenous manufacturing capabilities in telecom equipment. With the possible overall development in telecom and electronic sectors, upcoming PLI incentives will promote R&D to build solutions for cost-effective broadband and mobile communication.
It is noteworthy that the Telecom Department had already approved 31 project proposals under the PLI scheme for the Telecom sector. The investment in the telecom worth Rs 3345 crores in around four-and-a-half years. The companies under the PLI scheme including the multinational players were Nokia India, Ericson’s Jabil Unit, HFCL, Dixon Technologies, Tejas Networks, Akashastha Technologies, and GS India.
